Due Process Compliance Statement - Endorsement 2021 Narrow-scope amendments
The 2021 Amendments project was initiated as the Due Process Handbook (DPH) was being drafted. The project informed the development of the DPH.
| Title of the Amendment | Issue and effective dates |
|---|---|
| Disclosure of Accounting Policies Amendments to IAS 1 and IFRS Practice Statement 21 | - Exposure Draft ED/2019/6 published on 01/08/2019 - Comment deadline: 29/11/2019 - Final amendment published: 12/02/2021 - Effective date 1 January 2023 |
| Definition of Accounting Estimates Amendments to IAS 8 | - Exposure Draft ED/2017/5 published2 on 12/09/2017 - Comment deadline: 15/01/2018 - Final amendment published: 12/02/2021 - Effective date 1 January 2023 |
| Deferred Tax related to Assets and Liabilities arising from a Single Transaction Amendments to IAS 12 | - Exposure Draft ED/2019/5 published on 17/07/2019 - Comment deadline: 14/11/2019 - Final amendment published: 07/05/2021 - Effective date 1 January 2023 |
Endorsement process: 2021 Amendments
| Step | Required³ / Optional | Metrics or evidence | UKEB Secretariat comments |
|---|---|---|---|
| Work plan | |||
| Technical project added to UKEB technical work plan | Required | Project is included in the published technical UKEB Work Plan. | Complete: Amendments project page included on UKEB website. |
| Project preparation | |||
| Project Initiation Plan (PIP) | Required | PIP draft with project outline (background, scope, project objective) and approach for endorsement and adoption (key milestones and timing) proportionate to the project | Complete: The Secretariat included mandatory milestones for the project and considered, as appropriate, other milestones and activities, following a proportionate approach. PIP: Approved at 19/05/2022 Board meeting. |
| Required | Outreach plan for stakeholders and communication approach outlined | Complete: Due to the narrow-scope nature of the amendments, consultation activities were focused solely on obtaining responses on the Draft Endorsement Criteria Assessment (DECA) (as posted on the UKEB website). | |
| Required | Resources allocated | 1 Project manager overseen by 1 Senior Project Director. | |
| Optional | Assessment of whether to set up an ad-hoc advisory group | Complete: Assessed. An ad-hoc advisory group was not considered necessary due to the narrow-scope nature of the amendments, using a proportionate approach. | |
| Required | UKEB Board public meeting held to approve PIP | Complete: PIP approved at 19/05/22 Board meeting. | |
| Optional | UKEB education or initial assessment | Complete: An education session for Board members providing an overview of the narrow-scope amendments was held at 19/05/22 Board meeting. | |
| Communications | |||
| Board meetings | Required | UKEB Board public meetings held to discuss technical project | Complete. 19/05/22: PIP approval. 23/06/22: DECA – review and approval to publish for consultation. 17/11/22: Approval of the Adoption Package consisting of: • Final Endorsement Criteria Assessment (ECA) • Feedback Statement • [Draft] Due Process Compliance Statement • Adoption Statements for each of the 2021 Amendments |
| Secretariat papers | Required | Board meeting papers posted and publicly available on a timely basis. | Complete: UKEB's meeting papers published on the UKEB website one week before the relevant public meetings and subscribers notified via UKEB News Alerts. Meeting minutes and recordings made publicly available via the UKEB website and subscribers notified via UKEB News Alerts. |
| Project website | Required | Project website contains a project description with up-to-date information on the project. | Complete: Project webpage updated regularly with project status and additional materials. |
| Required | Update UKEB website | Complete: Project webpage updated regularly, and News Alerts issued to subscribers with latest status and documents. | |
| Alerts | Required | Evidence that subscriber alerts have occurred | Complete: Subscribers alerted via email 5 days before each Board meeting. This included the papers and an option to dial in to observe the discussion. For example, the DECA publication News Alert. |
| Optional | Project email address | A general UKEB email address was used for outreach and correspondence purposes throughout the duration of the project. | |
| Desk-based research | |||
| Optional | Identify relevant research sources and documents | Complete: Given that the IASB consulted on and finalised the 2021 Amendments before the UKEB's powers were delegated, neither the Board nor the Secretariat had the opportunity to influence the development of the IASB's proposals. However, the Secretariat's desk-based review of IASB's previous work on the amendments, of the UK responses to the proposals, and the basis for conclusions for each final amendment confirmed that the comments from UK stakeholders had been considered by the IASB when finalising the amendments. This analysis was included as an Appendix to the PIP discussed by the Board at 19/05/22 Board meeting. The Secretariat also reviewed the European Financial Reporting Advisory Group's (EFRAG) Endorsement Advice Letters to the European Commission for each one of the amendments included in this project4. |
|
| Optional | Agree main assumptions about the project | Complete: It was agreed that: • The 2021 Amendments are narrow scope. • Only the mandatory applicable activity and milestones in the draft UKEB's Due Process Handbook would be undertaken. • Expected outreach would adhere to the minimum stipulated in the draft Handbook. |
|
| Outreach activities | |||
| Consult with a representative range of stakeholders before adoption | Required | Evidence of consultation | Due to the narrow-scope nature of the amendments, consultation activities were focused on obtaining responses to the Draft Endorsement Criteria Assessment (DECA). The UKEB received seven comment letters. Comment letters are available on the UKEB website. |
| Draft Endorsement Criteria Assessment (DECA) | |||
| Required | UKEB sets comment period for response on DECA (not later than 90 days) | Complete: At 19/05/22 Board meeting the Board decided that the comment period for public consultation should be 90 days and approved the overall project plan. The DECA was published for consultation on 04/07/2022 (comment period deadline 03/10/22). |
|
| Required | Review and approval at UKEB public meeting | Complete: Approved at 23/06/22 Board meeting. | |
| Required | DECA posted on website for public consultation | Complete: DECA and Invitation to Comment posted on 04/07/2022. | |
| Required | News Alert to announce | Complete: News Alert posted on 04/07/2022 calling for comments | |
| Project closure | |||
| Final Endorsement Criteria Assessment (ECA) | Required | Public responses on DECA assessed and posted on website | Complete: The UKEB received seven comment letters and were published on the UKEB website. All responses were assessed, reflected as appropriate in the ECA and summarised in the 2021 Amendments feedback statement. |
| Required | Final ECA approved by UKEB in public meeting | Complete: A draft of the final 2021 Amendments ECA. This draft was presented for approval to the Board at 17/11/2022. The Board approved the draft final ECA, subject to suggested amendments. | |
| Required | Publish final ECA on UKEB website | Complete: Final ECA published on 2/12/22. | |
| Feedback statement | Required | Feedback statement approved by UKEB in public meeting | Complete: A draft of the final 2021 Amendments feedback statement was presented for approval to the Board at 17/11/22 Board meeting. The Board approved the draft final feedback statement, subject to minor amendments. |
| Required | Feedback statement posted on UKEB Website | Complete: Final feedback statement published on 2/12/22. | |
| Due Process Compliance | Required | Due Process Compliance | Complete: A [draft] DPCS was presented to the Board for approval at 17/11/22 Board meeting. An updated version of the final DPCS presented to the Board for noting on 14/12/22. |
| Statement (DPCS) | |||
| Required | Due Process Compliance Statement posted on UKEB Website | Complete: Final Due Process Compliance Statement published on UKEB website subsequent to the 14/12/22 Board meeting. | |
| Adoption Statement | Required | Adoption statements approved by UKEB in public meeting | Complete: Adoption statements for each one of the amendments were tentatively approved by the Board at 17/11/22 Board meeting. |
| Required | Adoption statements posted on UKEB Website | Complete: Final Adoption statements for each one of the amendments published on 2/12/22. | |
| Voting on adoption of 2021 Amendments | Required | Tentative vote | Complete: Tentative vote took place at 17/11/22 Board meeting based on the discussion of the 'adoption package', which included a final draft ECA, a feedback statement, a DPCS, individual adoption statements for each of the Amendments; and the text of each of the UK-adopted international accounting standards included in the 2021 Amendments project. Vote was indicative only. |
| Required | Evidence of written vote (in paper or electronic form). | Complete: Adoption statements and voting forms sent to the Board for voting (accompanied by the text of UK adopted IAS for each Amendment) on 25/11/22 (written forms due by 30/11/22). Vote formalised via Board members signing the formal voting forms for each Amendment. | |
| Required | News Alert published to announce the outcome of the vote within 3 working days of the formal vote | Complete: News Alert announcing adoption of the 2021 Amendments published on 2/12/22. |
Conclusion
This document sets out the main due process activities performed as part of the UKEB's project to endorse the 2021Amendments. Overall, this project due process complies with the UKEB Due Process that is in place at the time of writing.
Footnotes
Footnotes
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The project on Disclosure of Accounting Policies amended IFRS Practice Statement 2 Making Materiality Judgements as well as IAS 1. However, the amendments to the Practice Statement have not been included as part of the UKEB's 2021 Amendments project, as UK-adopted IAS comprises only the mandatory sections of the standards. ↩
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When originally exposed by the IASB, the title of these amendments was "Accounting Policies and Accounting Estimates" (Proposed amendments to IAS 8). ↩
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The references in this document to 'required' information reflect requirements set out in the revised Handbook. The UKEB's Handbook was being developed in parallel with this project, therefore, the work on the 2021 Amendments adheres to only the relevant process at the time of work being undertaken. ↩
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These letters are publicly available in https://www.efrag.org/. ↩